Chinese electric vehicle (EV) giant BYD is said to be finalizing plans to set up a major manufacturing plant close to Hyderabad, Telangana, which is a significant milestone for India's growing EV industry. This development, after long negotiations with the Telangana state government, reflects BYD's determination to deepen its presence in the Indian market while competing with Tesla and possibly turn Hyderabad into a major automotive cluster. The planned investment, which could be ₹85,000 crore ($10 billion) in size, reflects the scope of BYD's plans and the strategic significance of the Indian EV market.
The Telangana government's strong support is a key factor in BYD's interest in establishing a manufacturing facility. Currently, BYD officials are evaluating three potential sites near Hyderabad. Telangana's proactive approach, including its EV policy that waives road tax and registration fees until December 31, 2026, has positioned the state as a leading destination for electric vehicle manufacturers.
BYD's move to establish a manufacturing facility in Telangana follows earlier regulatory challenges. In 2023, the Indian government turned down a prior $1 billion investment plan with Megha Engineering and Infrastructures Ltd (MEIL) because of strict regulations on Chinese investments. Recent policy reforms, however, have opened the door for BYD's new expansion plans.
The firm's current technical association with Olectra Greentech, a MEIL group company that produces electric buses based on BYD technology in Hyderabad, is said to have impacted its location decision. This existing collaboration gives a solid base for BYD's future operations in the region.
BYD's strategy extends beyond car assembly. The company is planning to set up a 20-gigawatt battery manufacturing facility, with the goal of producing 600,000 EVs per year in five to seven years. This is a major investment that indicates the company's faith in the Indian EV market.
The planned manufacturing plant, covering an area of over 500 acres, will help BYD save the costs on importing vehicles, thus improving its competitiveness in India. BYD's latest technological leaps, such as a 1 MW flash charger that can fully charge an EV in 5-8 minutes and offer a 400 km range, demonstrate its dedication to innovation and its potential to transform electric mobility.
BYD's reported plan to set up a large EV manufacturing facility in Hyderabad is a major development for India's electric vehicle sector. The investment, along with Telangana's government support, is likely to generate many jobs, spur the development of ancillary industries, and promote the use of EVs throughout the country. As BYD deepens its footprint in India, it is poised to be a key driver of the future of electric mobility in the country, possibly making Hyderabad a top EV manufacturing hub. The expansion reflects India's increasing significance in the global EV market and its focus on sustainable transport.